Editorial: Forecast: Sunny outlook returning

Near the end of his speech, State Controller John Chiang gave the audience a chance to ask questions during the Northstate Economic Forecast Conference at the Gold Country Casino event center on Thursday in Oroville. (Bill Husa/Staff Photo)

Our view: The 2014 economic outlook isn't all blues for Butte County, but it's a long way from being rosy.

It is good to hear longtime missing words like "better" and "improving" when it comes to talking about the north state economy. Last week's annual Northstate Economic Forecast Conference delivered a more positive outlook through several speakers who think the worst is over.

For several years now, the forecast that things were getting no better was a tiresome, repetitious message. Some people thought this area was going to be down and out for years.

The forecast for 2014 is encouraging. Housing prices are rebounding, routing out the inventory of foreclosed and short-sale properties. That means sales can get back to normal, with buyers and sellers interacting, rather than banks.

Employers are creating jobs, not at a speedy pace, but faster than the past three years.

Just as the conference guests were ready to cheer the idea of better times, both economic speakers — California Controller John Chiang and economist Robert Eyler — brought everyone back to reality.

Yes, the economy is getting better, but there are still plenty of troubles.

All of them sound familiar — the state budget, water and cooperation in Sacramento.

Budget issues aren't going away because deep-seated changes have not been made. A tax increase has helped things temporarily, but long-term debt is still looming.

Water is an old topic, as is drought. But the urgency that sprang from Sacramento has been missing. Unless California gets surprised by a torrential downpour over the next month or two, it's going to get ugly here. Even the immediate impact of a water shortage is frightening, from water rationing to the rising cost of food and higher unemployment.

What it could mean in the long run is extremely hard to grasp at this point, but it is frightening, particularly in an area that relies on agriculture to fuel its economy and job market.

Yes, it's a relief to have some positive news for a change, proof that we're digging out of a deep hole. Unfortunately, that doesn't discount the reality that there's still a lot to be concerned about in California.